LEAGUE CITY, Texas, May 23, 2013 (GLOBE NEWSWIRE) -- ERF Wireless, Inc. (OTCBB:ERFB) (the "Company"), a leading provider of enterprise-class wireless and broadband products and services, announced today that the Company has filed its Form 10-Q with the Securities and Exchange Commission reporting results for the quarter ended March 31, 2013.
The Company's financial results reflect its continued focus on growth through the expansion of its turnkey communications services to the oil and gas industry during a period of continued strong oil and gas drilling activity in North America. These results include, but are not limited, to the following:
- The Company's overall consolidated revenues for the quarter ended March 31, 2013, were $1,913,000; an increase of $265,000 or 16%, as compared to $1,648,000 for the same prior year quarter ended March 31, 2012. The overall increase was comprised of a $192,000 increase in revenues in our Energy Broadband oil and gas operations subsidiary ("EBI"), as well as a combined increase of $73,000 from our wireless bundled services and enterprise network services business units.
- Revenues of the Company's EBI subsidiary for the quarter ended March 31, 2013, were $1,205,000 as compared to revenues of $1,013,000 for the same prior year quarter ended March 31, 2012; an increase of $192,000 or 19%.
- The Company's gross profit for the quarter ended March 31, 2013, was $889,000 as compared to $780,000 for the same prior year quarter ended March 31, 2012; an increase of $109,000 or 14%. This 14% increase in gross profits, along with the Company's 16% increase in revenues for the quarter ended March 31, 2013, resulted in an overall increase in gross margin of 46% for the quarter ended March 31, 2013, as compared to 47% for the same prior year quarter ended March 31, 2012.
- The Company reported an increase of $554,000 or 38% increase in operating expenses in the quarter ended March 31, 2013, as compared to the same prior period quarter ended March 31, 2012. The increase is primarily related to employment and professional expense associated with a headcount increase of 5 employees and approximately $127,455 in legal and professional fees associated with the ongoing arbitration proceedings with Schlumberger pertaining to disputes to resolve certain financial issues contained in the 2009 exclusive reseller agreement.
- The Company's consolidated total comprehensive net loss for the quarter ended March 31, 2013 was $1,656,000, as compared to a consolidated total comprehensive net loss of $969,000 for the same prior quarter ended March 31, 2012.
- The Company's primary and fully-diluted net loss per share for the quarter ended March 31, 2012, was ($0.24), as compared to a fully-diluted net loss per share for the quarter ended March 31, 2012, of ($0.40).
Richard Royall, CFO of ERF Wireless, commented, "During the first quarter of 2013, we continued to experience steady growth of both revenues and gross profits in our Energy Broadband subsidiary's business in the oil and gas sector. Energy Broadband now represents 63% of the total ERF Wireless revenue and continues to have a very positive impact on the company's overall results."
Mr. Tim Maxson, COO of ERF Wireless, commented, "We are very pleased with our first quarter results, which continue to be driven by the strong drilling activity of our major oil and gas customers. The recent shift in the industry and subsequent consolidation of oil rigs provides ERF with a better economy of scale when meeting customer needs. We continue to differentiate ourselves from our competitors by providing 'best in class' services, as well as leverage our expertise in building networks channels that effectively meet our customers' needs in the oil and gas sectors. This strategy also complements our other market segments and allows us to leverage the power of one effort over the entire customer base."
The company recently announced that during the first quarter of 2013, company officers and directors secured an initial round of debt and equity financing that totals approximately $1,665,000. This financing was secured from various funds, high-net-worth individuals and E-Bond purchasers.
According to Dr. H. Dean Cubley, CEO of ERF Wireless, "This round of financing provides adequate capital for the near-term growth needs of the company and will allow ERF Wireless to continue executing its business plan in the first portion of 2013. Additional rounds of financing currently being negotiated should also allow ERF Wireless to achieve the majority of its 2013-2014 objective of growth and profitability."
About ERF Wireless
ERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband Inc., ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF Wireless Messaging Services and ERF Network Services. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years. For more information, please visit our websites at www.erfwireless.com, www.energybroadband.com and www.erfwireless.net or call 281-538-2101. (ERFBG)
The information in this release may contain forward-looking statements relating to anticipated or expected events, activities, trends or results. Forward-looking statements can be identified by the use of forward looking terminology such as "believes," "suggests," "expects," "may," "goal," "estimates," "should," "likelihood," "plans," "targets," "intends," "could," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward-looking statements in this release include, without limitation, the Company's expectations of continued expansion into oil and gas markets and of our terrestrial broadband networks, along with other performance results. These statements are made to provide the public with management's current assessment of our business, and it should not be assumed that that the forward looking statements will prove to be correct. Security holders are cautioned that such forward- looking statements involve risks and uncertainties. The forward-looking statements contained in this release are only as of the date hereof, and we expressly disclaim any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in management's expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Please carefully review our filings with the Securities and Exchange Commission as we have identified many risk factors that impact our business plan.
CONTACT: ERF Wireless Inc. Clareen O'Quinn 281-538-2101 ext. 113 Email Contact firstname.lastname@example.orgSource:ERF Wireless Inc.